THE PRICE OF COAL.

Taranaki Daily News, 9 July 1921, Page 6

THE PRICE OF COAL.

THE INCREASED FREIGHT. REASON OF THE LATEST RISE. The statement made by Mr. 0. Holdsworth, managing director of the Union Steam Ship Company, in connection with the increase of 2<s 9d per ..on’ in the coal freight ‘between Wellington and West Coast, is reported at length in the Otago Daily Times. Mr. Holdsworth said that the necessity for the increases had been fully explained to coalmining companies for whom they carried, during the course of negotiations. It would, however, be only fair if the reasons for the advances were also placed before the public.

Mr. Holdsworth stated that the rates of freight charged up to the end of last month were not nearly sufficient to meet the expenses of steamers employed on the West Coast. Their operations for last year left a heavy loss on actual running expenses, without making provision for depreciation of the steamers, and the next six montluj resulted in an even larger deficit. Unfortunately expenses had not yet reached the “peak”, and bunker coal supplied in New Zealand had within the last few weeks increased about 40 per cent, according to description and quality of the coal. The cost of provisions was the only item showing a tendency to fall, but wages, labor ashore, overhauls, etc., and, as stated above, bunker coal, showed no sign of coming down. In these circumI stances increases were absolutely necessary, and for the next twelve months the coal companies had agreed to advances varying from 2s 9d per ton to Wellington and Lyttelton to a maximum of 5s a. ton to a roadstead port where dispatch continued very poor, the rates varying with the mileage and dispatch obtainable. The directors regretted such increases were necessary, and would reduce the rates when the cost of operating steamers came down.